Bitcoin Breaks Under $100K, Sparks $700M in Liquidations; XRP Loses 5%

Crypto Markets Reel as BTC Dips Below $100K, $700M Liquidated, XRP and DOGE Futures Lead the Crash

The cryptocurrency market faced a sharp selloff as Bitcoin (BTC) dropped below the $100,000 mark late Wednesday, erasing over $700 million in futures positions. XRP and Dogecoin (DOGE) futures bore the brunt, accounting for $70 million of the liquidations, pointing to heightened speculative activity in these altcoins.

BTC’s decline was triggered by comments from Federal Reserve Chair Jerome Powell after the latest FOMC meeting. While the Fed signaled potential rate cuts in 2025, Powell dampened market sentiment by clarifying that the Federal Reserve cannot legally hold bitcoin under existing laws.

“That decision would need to come from Congress, and we’re not seeking any regulatory changes in this regard,” Powell stated when asked about President-elect Donald Trump’s earlier proposal to establish a strategic Bitcoin reserve. Trump had pledged to retain seized BTC and explore additional acquisitions as part of his economic agenda.

The crypto market reaction was swift and severe. BTC fell 3% following Powell’s remarks, dragging down the broader market. XRP, DOGE, and Solana (SOL) dropped over 5%, while Ethereum (ETH) and Binance Coin (BNB) lost approximately 2.5%. Chainlink’s LINK faced the sharpest downturn, shedding 10%, erasing gains from a recent Trump-related rally driven by a $2 million token purchase from World Liberty Financial.

Futures tied to smaller altcoins and meme tokens saw heavier liquidations compared to BTC and ETH, a rare occurrence suggesting panic among speculative traders. Analysts believe this liquidation cascade could indicate a near-term market bottom if selling pressure abates.

Some experts expressed caution about the potential for further losses. Nick Ruck, director at LVRG Research, viewed Powell’s comments as a key inflection point.

“The absence of a strategic Bitcoin reserve removes a major catalyst that fueled recent price growth. Coupled with persistent inflation concerns, the market seems to be reassessing its bullish outlook,” Ruck commented in a Telegram message to CoinDesk.

Others, however, remained optimistic. Singapore-based QCP Capital highlighted the long-term potential for crypto, particularly with Trump’s administration poised to explore more supportive policies.

“We see this as a shakeout rather than a structural decline. The bigger picture remains intact, especially with 2025 expected to be a strong year for crypto adoption and regulation,” QCP stated in a client advisory.

As the market digests the Fed’s policy signals and grapples with macroeconomic uncertainties, traders are closely watching for signs of stabilization. The coming weeks could prove pivotal for determining whether this pullback represents a healthy correction or a deeper shift in market sentiment.